Regulatory Alerts2010-04-01
Notice Relating to the Issuance of Covered Bonds
The Autorité des marchés financiers establishes case-by-case authorization requirements for financial services cooperatives issuing covered bonds. Institutions must submit written requests detailing program management, volume limits, stress test results, and legal opinions to demonstrate the cover pool's quality and risk mitigation. The regulator may impose prudential conditions, such as additional capital requirements or asset limits, to ensure the bonds maintain priority creditor status despite liquidity and interest rate risks.
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